Misdeclaration penalty: Discretion, reasonable excuse, and mitigation: Lack of funds
Please note: VAT Misdeclaration Penalty has been replaced by the Schedule 24 inaccuracy penalty for all accounting periods where the return period commences on or after 01/04/2008 and the due date is on or after 01/04/2009. Misdeclaration penalty will still apply where the due date is before 01/04/2009.
Please see the Compliance Handbook CH80000 Penalties for Inaccuracies for further details.
The claim of lack of funds is specifically excluded from being a reasonable excuse, under VAT Act 1994, see VCP10761.